Creating a holiday budget: how much do I need to borrow?

Define your dream holiday

First things first – you need to decide what kind of holiday experience you want.

Are you an adrenaline junkie looking for an action-packed adventure with expensive activities and gear rentals? Or do you prefer a more relaxed journey, where you can immerse yourself in the local culture, savour delicious cuisine, and take leisurely strolls every day? The type of trip will inform your budget, so make a list and get to the core of what each option will cost.

Holiday budget considerations

Here's a breakdown of essential expenses to consider when creating your holiday budget:

Flights: Airfares are often the most significant expense for any trip. Prices fluctuate greatly, so keep an eye out for deals and book well in advance if you can.

Daily budget: It always helps to calculate your daily expenses, including food, transport, and other incidentals so you can have a realistic idea of what you’ll be spending each day.

Accommodation: Based on your accommodation choice, figure out the nightly rate and the total cost for your stay.

Experiences: If you plan to take tours or participate in specific activities, you’ll have to factor in their costs.

Travel insurance: Insurance is important – don’t get caught without it! It's a small expense that can save you from significant financial loss in case of unexpected events.

Visas: Check if you need a visa for your destination as sometimes there is a cost associated.

Add-ons: These may include rental cars, cancellation fees, change of plans or any other extras related to your trip. It’s always smart to have a buffer, just in case.

Tips and tricks for saving while you’re traveling

While having a travel budget is essential, there are also ways to save without compromising too much on your fun holiday vibes:

Travel off-peak: Travelling during off-peak seasons will lower the prices of flights and accommodation.

Use reward points: If you’re savvy with points hacking, then make sure you redeem your rewards and use them for travel discounts.

Book in advance: Booking activities and accommodation well in advance can sometimes lead to lower prices.

Cook your meals: Pick accommodation with a kitchen, so you have the option of preparing some of your meals which will help save on dining expenses.

Explore free activities: Many destinations offer free or low-cost attractions that can be just as enjoyable as the ones you pay for.